In January a college student posted a video showing him winning $100,000 on Polymarket — one of 145 that appeared to show bets adding up to almost $410,000, reports the Wall Street Journal. "But none of those bets were real."
Instead its creator was "one of dozens of mostly college-age creators Polymarket paid to film themselves making fake trades and sometimes scoring fake wins," the Journal reports, citing interviews with the creators an an analysis of more than 1,100 of their videos:
Polymarket built near-perfect copies of its website, then instructed creators to make simulated trades on those dummy sites and hide that they were being paid by Polymarket. To get the videos to go viral, Polymarket has recruited a social-media army to copy and re-post creators' footage. Though the New York-based company has been banned from offering its primary crypto platform in the U.S. since 2022, the social-media creators are paid to specifically target U.S. users, who can still access the site with a virtual private network...
Polymarket hired and worked closely with a marketing contractor to promote the site. In a message reviewed by the Journal, that contractor told its social-media army to repost content made by 10 Polymarket creators in particular... These creators didn't initially identify themselves as paid by Polymarket, although one offered a $20 bonus code in his social-media bio... The company instructed creators not to disclose they are paid, according to creators who have worked with the company. They said the pay often added up to $2,000 to $3,000 a month...
A handful of videos the Journal reviewed also contained short glimpses of URLs indicating the sites were test environments for Polymarket engineers... Creators said they send the finished videos to Polymarket for review. If a video isn't engaging enough, or if it bears obvious signs of being faked, Polymarket will ask for the videos to be reshot, the creators said... Polymarket sends creators bullet-point guidance on what to say, according to creators who have worked with the company and a recruiting website... Polymarket's viral clipping campaign racked up more than 140 million views on TikTok, YouTube and Instagram, according to the analytics provider Tubular...
Internal materials show that Polymarket and Virality promote videos showing how easy it is to conduct insider trades on the platform. Polymarket has paid clippers to promote at least 19 videos discussing opportunities to use inside information or other tactics to manipulate markets.
America's advertising laws "require people who are paid to endorse a product to disclose their ties," the article notes, "although there is some gray area about what's permitted." (After the Journal's investigation, the creators started adding "@polymarket partner" to their bios, the article points out._ And when asked for a comment, Polymarket "said it plans to conduct a comprehensive audit of active promotional content."
Read more of this story at Slashdot.
